SEIITRA RESEAU : revenue, balance sheet and financial ratios

In 2023, SEIITRA RESEAU achieves revenue of 21.4 M€. Revenue is growing positively over 8 years (CAGR: +3.8%). Slight decline of -1% vs 2022. After deducting consumption (116 k€), gross margin stands at 21.3 M€, i.e. a rate of 99%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 3.6 M€, representing 16.7% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -13%, reducing margin by 2.3 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Net income is negative at -4.2 M€ (-19.4% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 95%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 40%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 13.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 50.29. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 50.1x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 21 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 93 days. Excellent situation: suppliers finance 72 days of the operating cycle (retail model). Inventory turnover is 2 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 8 days of revenue, i.e. 490 k€ to permanently finance. Notable WCR improvement over the period (-91%), freeing up cash.

Based on 103 transactions of similar company sales (all years), the value of SEIITRA RESEAU is estimated at 4 178 128 € (range 1 597 844€ - 11 439 861€). With an EBITDA of 3 590 073€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.25x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.